Defrauded Immigrant Investors Can’t Sue Bank Over Lost Funds

Sept. 21, 2020, 2:53 PM

Regions Bank had no fiduciary duty to watch for fraudulent activity related to an account ostensibly set up for the benefit of 13 Chinese EB-5 investors, a U.S. judge ruled, dismissing their $7 million lawsuit.

The investors failed to show Regions owed them “any duty in tort or any fiduciary duty,” making it liable for their losses “solely because of its status as the bank holding the account into which their EB-5 funds were deposited,” Birmingham, Ala., U.S. District Judge Karon O. Bowdre ruled Friday.

“In dismissing the Investors’ amended complaint in its entirety, the court does not doubt that ...

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